Fraud by Abuse of Position (Section 4 Fraud Act 2006)

Fraud by Abuse of Position is an offence under s.4 Fraud Act 2006, read with s.1. A person is in breach of s.4 if he occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, dishonestly abuses that position, and intends, by means of the abuse of that position, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss (s.4(1)). A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act (s.4(2)). A person who is in breach of s.4 is guilty of fraud (s.1(1) and (2)(c)). Maximum sentence: on conviction on indictment, imprisonment for a term not exceeding 10 years or a fine (or both); on summary conviction, imprisonment for a term not exceeding the general limit in a magistrates' court (12 months in the case of an offence triable either way, Sentencing Act 2020 s.224(1A)(b)) or a fine not exceeding the statutory maximum (or both) (s.1(3)).

In practice

This is an either-way offence: it may be tried at the magistrates' court or the Crown Court. Mode of trial depends on the seriousness and the defendant's election. The suspect must be cautioned in accordance with Code C PACE 1984 before any questions about the offence are put to them. Interviews must be audio-recorded (Code E) or, for indictable offences, may be visually recorded (Code F).